Israel’s transport crisis is causing a dramatic change in the job market. Most Israelis don’t want to commute for more than 45 minutes each way, whether they drive to work or use public transport.
In the reality of endless traffic jams and slow, tedious public transport, this reduces the distance that employers can find workers and workers can find jobs.
Commuting habits affect a wide range of effects, including Israel’s economy and employee productivity, the office real estate market, opportunities in times of dramatic change in the job market, and the quality of life for employees.
Data: Almost 64% come to work by car
According to the 2023 Central Bureau of Statistics’ Social Survey Data, the most recent official data, almost 64% of the country’s citizens come to work by car. 70% of Israelis only take 45 minutes to go to work.
These data are consistent with studies conducted around the world and studies that reflect the time people are willing to spend in and out of work.
Therefore, two-hour commutes will never become the norm, but rather the commute times will remain the same, and the distance radius will vary. Those living in dense urban areas will find employment opportunities easily, while those living in the suburbs will experience greater distress.
“The head of the local government has become accustomed to the fact that when they planned the housing unit, the developers came and built the housing unit. They think they will do the same thing at work and then they will also build offices that will bring a lot of money from the local government’s taxes, which is not true, but explain that Aron Sigler is a partner in the last city planning.
“Employment is conveniently located for employees to reach. Employers want to set up offices in a neighborhood with two exits each morning. That’s why there’s an surplus of unutilized, approved office space and the difficulty of getting in and out of work is a major limitation of the central location of the country where offices can be found.
“When investing in public transport, it’s a very effective solution for many people, and we’ll see this in Petatikva next to the Light Rail Red Line, and in Holon in preparation for the construction of the Green Line.”
Tel Aviv is investing more than neighbors in alternatives to driving
In fact, in Tel Aviv, the data is different from other parts of the country. According to a social survey in the Tel Aviv Small District, 77.5% of employees arrive at work within up to 45 minutes, 21% using public transport, over 6% using bicycles and scooters, and around 13% walking to work, while only 54% of employees use cars.
These can also explain the changes in the office market. Electra CEO Itamar Deutscher recently spoke to Gloves. “There are major weaknesses outside of Tel Aviv: Although rental space has been offered at a lower price than here over the past decade, there are buildings with waitlists that are not noticeable in Tel Aviv.
“I personally don’t think Tel Aviv will be affected. In the vicinity, even the first circle outside Tel Aviv can take a long time for the market to recover, as it will ultimately be important for the offices on scooters.
“The product we all need most is workers, and in Tel Aviv it is certainly the easiest to find workers in the technical sector, and these are not people who drive cars at all.
In addition to railways and light rails, in Tel Aviv, municipalities pave tens of kilometers of bicycle routes and operate public transport routes that dramatically improve the way you get to work.
Sigler said, “The distance from East Givatime to Hasahalom Railway Station is the same as the distance from the sea to Hasahalom Station – about 3 km. Despite its short distance, only one city is investing in car alternatives, such as bike paths and priority lanes for public transport. When you leave Tel Aviv, you find that most cities prefer to drive anywhere, complaining about traffic congestion.
“We created a map showing the invisible boundary between cities: in green we marked buildings near the bike route from the station up to five kilometers, red and buildings near the light rail station, and in yellow we marked priority lanes for public transport.
“Not surprising, all data shows that Tel Aviv residents may drive to work, indicating that Ramatgan or Gibatime residents are far less likely than the likelihood that they will travel by car.
Employers are reclaiming parking spaces returned during the covid pandemic
“Every big business you see is doing employee commute checks as part of its strategic process,” says Salit Itzhakov, Israel CEO of Colliers. Collier Israel advises on the efficiency and transition process for businesses primarily in the technology and financial sector.
She explains, “In the first stage we look at where employees come from and what routes they take. Today, employees work in the workplace averages two and a half years. So when considering office movements, it’s better to provide solutions to both existing and potential employees.”
Itzhakov said, “Employers are always looking at trains, especially train stations, then light rails. They only see buses in the third stage. At the same time, some of them prefer to be close to the main road.”
Transport issues have become so important that Yitzhakov explains that property owners are offering shuttles to try to attract potential workers to the employment sector.
“We had a company in Petatikba where employees were considering the possibility of reducing costs to come from this area and go to Rosh Hai Inn or other geographical areas, but the management unanimously decided not to move out of the Petatikba area as it is a strategic decision for the employees and a strategic decision of the company.
“In contrast, another company in Peta Tikba didn’t mind moving to another area to sort out the transportation of its employees. It moved for the employees. It was still a very dramatic event and, in retrospect, there was a very high abandonment rate.
“On the other hand, as soon as they moved to the Modiin area, they were exposed to an additional target group that they could hire from the area. Previously they were unable to attract. Especially in this case, they were looking for workers rather than technology developers, so the target group was suitable for change.”
According to Yitzhakov, working from home, which many people had high hopes during the COVID era, is also declining.
“The closer you get to the railroad, the fewer parking spaces your company needs. And in general, despite Trump’s statement, the ESG field that needs to be wary of existing issues is still very prominent among global companies. Space.”
Commuting time affects employee recruitment as well as productivity. “Today, employees leave the house later to avoid traffic jams, and they leave the office early to avoid afternoon rush hour. Of course, this is true too, and I think they will go home and work from home, but the productivity rate will drop significantly.”
She said, “I think employers will turn a blind eye to the fact that employees arrive later and leave early. Ultimately, if they taste productivity, they really don’t care if they know how to produce production within the working hours given them, to complete their work, the employers really don’t care.
“In some places, there’s no doubt that more time in the office means employees can do more. But this is an old-fashioned idea. Today, employers don’t have options so they think differently.
Employee: 60% gave up on work due to long commutes
The public transport infrastructure crisis is felt not only by employers and office real estate markets, but of course by employees.
Itai Shafran of Pitronot Planning Economics Company explains that a survey found that 60% of respondents gave up on work because they had to commute too long.
He said, “The job market is associated with a place with the strongest connections and power in the mass transport system. In Israel, this place is very clear and will begin the streets of Tel Aviv between Yigal Allon and Menachem.” This is the place with the most powerful economic power in the country, and sometimes it loses its value like Rothschild boulevard ads boulevard.” Not only has Tel Aviv weakened, but it has also reached an unprecedented number of construction commenced in the past five years. If demand is around 700,000 square meters per year in the country, a total of 1.5 million square meters would be allowed in 2024, of which 13,000 square meters construction began in Tel Aviv. ”
According to him, “If you pay 50-100 per square meter in a metropolitan area near the Tower of Azrieli, you pay 150-200 per square meter. However, it improves your ability to acquire human capital in a way that covers many of the countries.
Published by Globes, Israel Business News – En.globes.co.il – April 16, 2025.
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